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RFID vs Barcode: Determining Which is Right for Your Application

Published on July 9, 2024

Written by: Mercom

graphic explaining RFID vs Barcode and determining which is right for you

RFID or Barcode?

In today’s business world, efficiently managing inventory and assets is crucial. Two common technologies for this are Radio Frequency Identification (RFID) and barcodes. Each has its unique advantages and disadvantages. This blog will explain what RFID and barcodes are, how they work, and their pros and cons, helping you decide which is best for your needs.

What is RFID?

RFID stands for Radio Frequency Identification. It uses radio waves to identify and track tags attached to objects. These tags store information that can be read by an RFID reader without needing to see or touch the tag. RFID is widely used in inventory management, asset tracking, access control, and contactless payments.

How Does RFID Work?

An RFID system has three main parts: tags, readers, and an antenna. RFID tags can be passive (no power source) or active (battery-powered). Passive tags get power from the RFID reader’s signal, while active tags use their battery to send signals over longer distances.


When the RFID reader sends out a signal, it activates the tag. The tag then sends its information back to the reader. The reader processes this data and sends it to a central system. RFID can read tags quickly and from a distance, making it very efficient.

What is a Barcode?

A barcode is a visual representation of data using bars and spaces of different widths. Barcodes are read by barcode scanners. They are common in healthcare, retail, logistics, and manufacturing, helping with product tracking, inventory management, and the checkout process. The most well-known barcode is the Universal Product Code (UPC), but there are many types, including QR codes for more complex data.

How Does a Barcode Work?

Barcode systems work by scanning the pattern of bars and spaces with a light beam from a barcode reader. The reader detects the pattern and converts it into digital data. This data is then sent to a computer or database for processing. Barcodes need to be scanned directly and from close range, making them simple but sometimes limited in use.

Pros & Cons of RFID

Pros:

  • No Line-of-Sight Needed: RFID tags can be read without being seen.
  • Longer Read Range: RFID can read tags from several meters away.
  • High-Speed Reading: Can read many tags at once.
  • Durable: RFID tags can withstand tough conditions.

Cons:

  • Cost: RFID systems are more expensive than barcodes.
  • Interference: Signals can be blocked by metal or liquids.
  • Complexity: Setting up RFID can be complicated and may need special knowledge.

Pros & Cons of Barcodes

Pros:

  • Affordable: Barcodes are cheap to make and use.
  • Simple: Easy to set up and use.
  • Widespread: Commonly used and accepted everywhere.

Cons:

  • Needs Line-of-Sight: Barcodes must be seen to be scanned.
  • Limited Data: Can only store a small amount of information.
  • Damage: Barcodes can get damaged and become unreadable.

Assess Your Needs & Choose the Best Fit

Choosing between RFID and barcodes depends on your business needs. If you need to read items quickly, from a distance and can handle a higher cost, RFID might be best. If you want a low-cost, simple solution for basic tracking, barcodes are likely better.



Consider your environment, the number of items you need to track, how accurate you need the tracking to be, and your budget. By thinking about these factors, you can pick the technology that will best improve your business operations.

Enhance Your Inventory Efficiency with Mercom's RFID and Barcode Solutions

If you're considering upgrading your inventory and asset management system, Mercom has you covered. We specialize in repairing and selling RFID and barcode scanners, ensuring that your business stays efficient and effective. Whether you opt for the long-range capabilities of RFID or the simplicity of barcodes, Mercom offers top-notch solutions to meet your needs. Contact us today to explore how we can enhance your tracking processes and streamline your operations with the right technology choice.

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